UK Stocks - Factors to watch on Wednesday 13

 

Britain's FTSE 100 is seen opening up slightly on Wednesday, recovering a little after a sell-off the previous session on concerns that China's move to tighten banks' reserve requirements may slow global economic recovery.

Financial bookmakers see the blue-chip index up 4 to 8 points or around 0.1 percent after it fell 0.7 percent to close at 5,498.71 on Tuesday.

The surprise move by Beijing to increase bank reserve requirements is the strongest step to date by the People's Bank of China that it is starting to normalise monetary policy from a very loose stance.

The news about Chinese reserve requirements, which emerged after Asian markets closed the previous day, dented stocks in the region on Wednesday with Japan's Nikkei falling 1.3 percent.

Investors will watch UK manufacturing and industrial output data due at 0930 GMT for further clues on the performance of the British economy as it emerges from a deep recession.

 Britain's Business Secretary Peter Mandelson will meet with institutional investors on Wednesday to urge them to take a more long-term view rather than seeking short term gains, his spokesman said.
  
 * Nikkei falls after China move, profit-taking weighs
  
 * Bank levy fears, Alcoa batter Wall Street
  
 * Yen pauses after gains, U.S. earnings eyed
  
 * Oil below $80 on US inventory jump, China tightening
  
 * Gold flat after tumble on China bank steps
  
 * Metals pare losses as investors assess China demand
  
 * Stocks, commodities fall after China bank move
  
 * Treasuries edge down in Asia after rally
  
 UK stocks to watch on Wednesday are: 
  
 CADBURY 
 
 Bid-target Cadbury said it had good support from its shareholders in repelling the hostile bid from Kraft Foods and should be able to deliver on its financial targets for 2010.
  
 But Italy's Fererro has decided not to bid for Cadbury, further strengthening the case of Kraft in its 10.5 billion pound ($17 billion) takeover bid for the British chocolatier.
  
 GLAXOSMITHKLINE 
 
 The drug company sees little risk of generic competition for top-sellingrespiratory drug Advair, the company's chief executive said on Tuesday
  
 NATIONAL GRID 
 
 Managers at National Grid will meet representatives from Unite on Thursday to make last-minute attempts to avert a strike at the UK's power networks operator, The Times said.
  
 MITCHELLS & BUTLERS
 
 The largest shareholder of the pubs operator Joe Lewis urged investors to back their four board proposals on Tuesday and slammed the companies for its recent conduct.
  
 ASHMORE GROUP 
 
 The company releases a trading update.
  
 FENNER 
 
 The company releases a trading update.
  
 GREGGS 
 
 The company releases a trading update.
  
 DIPLOMA 
 
 The company releases a trading update.
  
 SIG 
 
 The company issues a trading update.